April 19, 2005
IF ONLY THE DEMOCRATS HAD A BLAIR:
Blair refuses to rule out means testing of pensions (George Jones, 19/04/2005, Daily Telegraph)
The future of the state retirement pension was thrust to the centre of the election campaign last night, as Tony Blair refused to rule out means testing for the better off. [...]The Conservatives, who have announced a £1.7 billion tax rebate to tackle the pensions crisis, claimed Labour was considering means testing pensions and was split over the idea of forcing people to save for a pension.
Labour's manifesto, published last week, set out broad aims for a reformed pension system, but said the key decisions would not be taken until the autumn when the Government receives the report of a pensions commission.
David Willetts, the Tory pensions spokesman, said ministers had expressed support for switching from a state pension based on NI contributions to a "citizen's pension", paid to everyone who had lived in this country. It would cost billions of pounds extra, and taxes would have to rise unless it was means-tested.
Mr Willetts said that a citizen's pension would be just another benefit, not something people had earned by their contributions. "Once the link with contributions has gone, no one will have a pension as of right."
The Tories challenged Mr Blair to rule out means testing, but he refused to do so when questioned at Labour's daily press conference.
We've already let too many countries get to our Right on economics--it'd be really embarrassing if Labour reformed pensions before we reformed SS. Posted by Orrin Judd at April 19, 2005 11:33 AM